tag:blogger.com,1999:blog-66959581435611614342018-02-17T08:02:53.353-05:00Real Homes Atlanta blogReal Estate News And InformationJunior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.comBlogger134125tag:blogger.com,1999:blog-6695958143561161434.post-38155434654633558082017-03-28T16:17:00.002-04:002017-03-28T16:17:54.698-04:005 home-building secrets you should know<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">(BPT) -<span class="Apple-converted-space">&nbsp;</span><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;">Thousands of Americans who are in the process of building their own home, or simply looking into it, are faced with hundreds of different questions. Granite or quartz countertops? Neutral or bold colors? Tile or hardwood flooring? And those questions are just the tip of the iceberg.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><a href="https://2.bp.blogspot.com/-kxQx-Tew9Y0/WNrE4erUiBI/AAAAAAAAAlY/sWROSfmGV2kRExdfva6HhXIQoDNCrPZOQCLcB/s1600/29726784.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="213" src="https://2.bp.blogspot.com/-kxQx-Tew9Y0/WNrE4erUiBI/AAAAAAAAAlY/sWROSfmGV2kRExdfva6HhXIQoDNCrPZOQCLcB/s320/29726784.jpg" width="320" /></a><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;">Being able to make these detailed choices is a big part of why you decided to build and design a custom home that will show off your unique style.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;">But as any professional builder will tell you, the secret to building a truly great house isn't what fixtures you choose or the type of crown molding you install. Rather, the most important components of a house are hidden behind the build.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;">The following five points represent some of the most important hidden aspects of any new home construction that will ensure your house retains its beauty for decades.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;"><strong>1. Proper insulation.</strong><span class="Apple-converted-space">&nbsp;</span>No matter where you are in the country, it’s likely that the temperature outside will get too hot or too cold. In such situations you’ll rely on heating or air conditioning. Good insulation not only saves money, but keeps your furnace and AC units working longer and more effectively. In cold areas, proper insulation is key to preventing destructive ice dams from forming.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;"><strong>2. Subflooring.</strong><span class="Apple-converted-space">&nbsp;</span>Whether you use hickory, maple or bamboo, everyone has their preference when it comes to flooring, but something that all flooring materials need is a solid subfloor. Like a box-spring for your mattress,<span class="Apple-converted-space">&nbsp;</span><a href="http://customhomeresource.com/importance-of-subflooring-silencing-floor-squeaks?utm_source=BrandPoint&amp;utm_campaign=Huber%20Connections%20Campaign&amp;utm_medium=Content%20Distribution&amp;utm_content=Silencing%20Floor%20Squeaks" rel="nofollow" target="_blank">AdvanTech(R) subflooring from Huber Engineered Woods</a><span class="Apple-converted-space">&nbsp;</span>provides a solid foundation that prevents sagging and squeaking, keeping your finished floor looking better, for longer.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;"><strong>3. A smart house.</strong><span class="Apple-converted-space">&nbsp;</span>Just like our phones, cars and televisions have been radically changed by the digital revolution, so have our homes. Today's modern smart homes are designed to fit our digital lives. Some features to consider are a consul to place your WiFi router so you can set up the appliances and thermostat for wireless. That way you'll be able to access them from a tablet or phone. You might even want to install some USB outlets.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;"><strong>4. Modern kitchen solutions.</strong><span class="Apple-converted-space">&nbsp;</span>Today it’s all about expansive, open-concept kitchens. With stone countertops and larger refrigerators, engineers have noticed the combination of heavy appliances and a larger floor surface area puts more stress on the finished floors. Installing<span class="Apple-converted-space">&nbsp;</span><a href="http://customhomeresource.com/importance-of-subflooring/reasons-for-advantech?utm_source=BrandPoint&amp;utm_campaign=Huber%20Connections%20Campaign&amp;utm_medium=Content%20Distribution&amp;utm_content=Reasons%20for%20Advantech" rel="nofollow" target="_blank">AdvanTech subflooring</a><span class="Apple-converted-space">&nbsp;</span>creates a solid base for floorboards and heavy modern appliances to rest on, thus helping to prevent squeaky or uneven floors in your kitchen.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;"><strong>5. Choose the right exterior walls.</strong><span class="Apple-converted-space">&nbsp;</span>The exterior “shells” of homes are being built tighter. In other words, new products and practices are being used to help reduce air leakage as part of the overall energy efficiency design. Next-generation exterior sheathing systems like ZIP System(R) sheathing and ZIP System(TM) tape have built-in water barriers and taped panel seams to create one continuous protective barrier underneath your finished exterior to help lock-out water and air.</span></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><br /></div><div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12pt;">If you haven’t already, talk with your builder about the hidden elements of your home, like<span class="Apple-converted-space">&nbsp;</span><a href="http://customhomeresource.com/importance-of-subflooring/talk-to-your-builder?utm_source=BrandPoint&amp;utm_campaign=Huber%20Connections%20Campaign&amp;utm_medium=Content%20Distribution&amp;utm_content=Talk%20to%20Your%20Builder" rel="nofollow" target="_blank">AdvanTech subflooring</a>, that will help your home stand up to the tests of everyday life. After all, this is the house you always envisioned, and behind the beautiful layout, you want to make sure you have a solid foundation and good bones to ensure lasting beauty and life.</span></div><img border="0" height="1" src="http://www.brandpointcontent.com/printsite/ImageWriter.ashx?memberid=91759&amp;articleid=29726" style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot;Times New Roman&quot;; font-size: medium; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;" width="1" />Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com1tag:blogger.com,1999:blog-6695958143561161434.post-21747829301219063982016-11-14T16:26:00.000-05:002016-11-14T16:26:18.181-05:00Appraisers & Homeowners Don’t See Eye-To-Eye on Values<div class="entry-featured"> <div class="entry-thumb"><img alt="Appraisers &amp; Homeowners Don’t See Eye-To-Eye on Values | MyKCM" class="attachment-entry size-entry wp-post-image" height="410" src="http://s3.amazonaws.com/kcmmedia/2016/10/11115023/20161013-Share-STM.jpg" width="750" /></div></div><div class="entry-content content"> <br />In today’s housing market, where <a href="http://www.mykcm.com/2016/10/04/strong-buyer-demand-continues-to-outpace-inventory-of-homes-for-sale/" target="_blank" title="supply is very low and demand is very high">supply is very low and demand is very high</a>, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.<br /><br />If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the selling price when performing the appraisal for the bank.<br /><br />Every month, Quicken Loans <a href="http://www.quickenloans.com/press-room/2016/09/13/home-appraisals-fall-owner-perceptions-nationally-home-value-growth-leaps-forward/" target="_blank" title="measures the disparity">measures the disparity</a> between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their <em>Home Price Perception Index (HPPI).</em> Here is a chart showing that difference for each of the last 12 months.<br /><br /><a class="cboxElement" href="http://s3.amazonaws.com/kcmmedia/2016/10/11115103/20161013-STM-ENG.jpg" rel="lightbox[39615]" target="_blank" title="Appraisers &amp; Homeowners Don’t See Eye-To-Eye on Values | MyKCM"><img alt="Appraisers &amp; Homeowners Don’t See Eye-To-Eye on Values | MyKCM" class="alignnone wp-image-39619" height="450" src="http://s3.amazonaws.com/kcmmedia/2016/10/11115103/20161013-STM-ENG.jpg" width="600" /></a><br /><h3><strong>Bottom Line</strong></h3>Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this, and any other obstacle that may arise.<br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-18656462303392646092016-11-10T21:50:00.001-05:002016-11-10T21:50:16.725-05:00This Advice on Homeownership Hasn’t Changed in 200 Years<div class="entry-featured"> <div class="entry-thumb"><img alt="TR.AC-600" class="attachment-entry size-entry wp-post-image" height="350" src="http://s3.amazonaws.com/kcmmedia/2015/04/11170211/TR.AC-600.jpg" width="600" /></div></div><div class="entry-content content"> <br />Last month, we <a href="http://mykcm.com/2015/03/19/billionaire-says-real-estate-is-best-investment-possible-3/" title="reported">reported</a> that billionaire <strong>John Paulson</strong> believes in the financial advantages of homeownership. He has often repeated:<br /><br /><blockquote><em>"I think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you're the owner-occupier of.”</em></blockquote><br /><span id="more-33630"></span><br />However, he has not been the only billionaire to give such advice. As a matter of fact, that same advice has been given by people of wealth throughout the history of our nation.<br /><br />Here is a quote often attributed to <strong>Theodore Roosevelt</strong>, 26th President of the United States and billionaire real estate developer:<br /><br /><blockquote><em>“Every person who invests in well-selected real estate … adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”</em></blockquote><br /><strong>Andrew Carnegie</strong>, one of the richest entrepreneurs in American history <a href="http://www.quoteswise.com/andrew-carnegie-quotes.html" target="_blank" title="said">said</a>:<br /><br /><blockquote><em>“90% of all millionaires became so through owning real estate.”</em></blockquote><h3>Bottom Line</h3>If the same advice has been given by the wealthiest people in each era of our country’s history, perhaps we should take it.<br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-33335845539193669842016-11-09T19:08:00.002-05:002016-11-09T19:08:31.106-05:00Location, Location, Location<div class="entry-featured"> <div class="entry-thumb"><img alt="Location" class="attachment-entry size-entry wp-post-image" height="315" src="http://s3.amazonaws.com/kcmmedia/2015/03/11165418/Location.jpg" width="600" /></div></div><div class="entry-content content"> <br />A recent Demand Institute <a href="http://www.demandinstitute.org/sites/default/files/blog-uploads/location-matters.pdf" target="_blank" title="report">report</a> revealed <em>“nearly half of all American households plan to move at some point in the future.”</em><br /><br />Seventy-five percent of those surveyed in the report cited one or more ‘location-related reasons’ for their eagerness to move. Here are the top 5 reasons:<br /><br /><ol><li>Safer Neighborhood – 30%</li><li>Closer to Family – 27%</li><li>Change of Climate – 26%</li><li>Closer to Work – 25%</li><li>For a New Job – 23%</li></ol>While the majority of Americans (74%) will move within their home state, for the 26% planning to call a new state home, it is important to know that prices in each state are appreciating at different rates and waiting to buy or sell your home could cost you more in the long run.<br /><br />The map below was created using the FHFA’s latest Home Price Index and shows year-over-year price gains in each state.<br /><br /><a class="cboxElement" href="http://www.simplifyingthemarket.com/wp-content/uploads/2015/03/FHFA-State-YOY-STM.jpg" rel="lightbox[33608]" target="_blank" title="Year-Over-Year Price Gains | Simplifying The Market"><img alt="Year-Over-Year Price Gains | Simplifying The Market" class="alignnone wp-image-30321" height="432" src="http://www.simplifyingthemarket.com/wp-content/uploads/2015/03/FHFA-State-YOY-STM.jpg" width="600" /></a><br /><br /><h3><strong>Bottom Line</strong></h3>If your plan for 2015 includes relocating to a new state, meet with a local real estate professional in that area who can help you find the best fit for you and your family’s needs.<br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-6310915401291038582016-11-08T07:04:00.001-05:002016-11-08T07:06:04.640-05:00New Fannie Mae Appraisal Program: Helping or Hurting?<div class="entry-featured"><div class="entry-thumb"><img alt="Helping-or-Hurting" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2015/01/11163607/Helping-or-Hurting.jpg" height="315" width="600" /></div></div><div class="entry-content content"><br />Every home must be sold TWICE! Once to the buyer, and once to the bank appraiser if a mortgage is involved.<br /><br /><h4><b>The second sale may have just become more difficult.</b></h4>A new <a href="https://www.fanniemae.com/singlefamily/collateral-underwriter" target="_blank" title="program">program</a> announced by Fannie Mae may slow down the home-sale closing process by causing more disputes over prices between sellers and buyers.<br /><br />In a recent Washington Post <a href="http://www.washingtonpost.com/realestate/fannie-maes-bid-to-boost-appraisals-accuracy-draws-fire/2015/01/08/ec206426-9506-11e4-8005-1924ede3e54a_story.html" target="_blank" title="article">article</a> they explained the basics of the program:<br /><br /><blockquote><i>“Starting Jan. 26, Fannie plans to offer mortgage lenders access to proprietary home valuation databases that they can use to assess the accuracy and risks posed by the reports submitted by appraisers.”</i><i>&nbsp;</i></blockquote><br /><blockquote><i>“The Fannie data will flag possible errors in the appraiser’s work before the lender commits to fund the loan, will score the appraisal for overall risk of inaccuracy and may provide as many as 20 alternative “comps” — properties in the area that have sold recently and are roughly comparable to the house the lender is considering for financing but were not used by the appraiser.”</i></blockquote><br />Using the additional information provided by Fannie Mae, the lender can then ask for an explanation from the appraisal company for any discrepancies and request an amended appraisal.<br /><br />This added step in the process of determining the price of the home to be bought/sold, could add time to the closing process and cost to the appraisal for the additional work.<br /><br /><h3><b>Why is this happening?</b></h3>Fannie Mae wants lenders to make informed decisions when agreeing to the amount of a loan that a buyer will be approved for.<br /><br /><blockquote><i>“Excessive valuations create the risk of future losses to lenders and investors if the borrower defaults and the house goes to foreclosure.”</i></blockquote><br /><h3><b>What is the process now?</b></h3><h4><b>As a seller:</b></h4>You’ve put your house on the market, picked an agent who has helped you determine that the best price to list your home for is $250,000, and found a buyer willing to pay that price. The appraiser comes to the home and agrees your home is worth the asking price and writes their report. Everything is working perfectly!<br /><br /><h4><b>As a buyer:</b></h4>You’ve found your dream home, in the right neighborhood, in the right school district, with the perfect yard, at the high end of your budget, but all the pluses are worth it. You agree on a price and start daydreaming about living in your new home.<br /><br /><h3><b>What happens after January 26th?</b></h3>The lender submits the appraisal report to the new Fannie Mae program and they come back with <i>“lower-risk comps”</i> that value the home at $230,000. The lender then turns to the appraisal company to justify the $20,000 difference, adding time and frustration to the process.<br /><br />If the lender does not agree with the reasons for the price difference they will not lend the buyer the amount they need to purchase their dream home and the amicable, agreeable sale turns into a heated justification of the higher price. The buyer may even have to give up on the home if the funding isn’t there.<br /><br />An <a href="http://www.housingwire.com/articles/32570-appraisers-worry-new-fannie-mae-program-could-bust-deals" target="_blank" title="article">article</a> by Housing Wire shares the appraiser’s point of view:<br /><br /><blockquote><i>“The bottom line, appraisers say, is this could lead to delays to closings and higher costs, as well as a depression of prices in markets where prices are rising.</i></blockquote><br /><blockquote><i>Appraisers complain that if they have to justify every step of their comps for their valuation, rather than those coming from the one-size-fits-all evaluation from Fannie, it will delay closing, throw off buyer and seller timetables, and delay real estate broker commissions.”</i></blockquote><br /><h3><b>Bottom Line</b></h3>The fear of some real estate practitioners is that if appraisers feel as though they are constantly being second-guessed, they may become more conservative in their assessments, impacting home values and slowing growth in the market.</div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-20392730092316870382016-11-07T07:01:00.000-05:002016-11-08T07:01:34.911-05:00Don’t Wait! Move Up To The House You Always Wanted<div class="entry-featured"> <div class="entry-thumb"><img alt="Dream-Home" class="attachment-entry size-entry wp-post-image" height="315" src="http://s3.amazonaws.com/kcmmedia/2015/01/11163526/Dream-Home.jpg" width="600" /></div></div><div class="entry-content content"> <br />Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. In most areas, prices&nbsp;are still below those of a few years ago.&nbsp;Also, interest rates are still near 4%.<br /><br />However, sellers should realize that waiting to make the move while mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can buy will decrease. Here is a chart detailing this point:<br /><br /><a class="cboxElement" href="http://www.simplifyingthemarket.com/wp-content/uploads/2015/01/Buyers-Purchasing-Power.jpg" rel="lightbox[33558]" target="_blank" title="Buyers Purchasing Power | Simplifying The Market"><img alt="Buyers Purchasing Power | Simplifying The Market" class="alignnone wp-image-29914" height="450" src="http://www.simplifyingthemarket.com/wp-content/uploads/2015/01/Buyers-Purchasing-Power.jpg" width="600" /></a> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-32264525331932755762016-11-04T19:23:00.003-04:002016-11-04T19:31:27.692-04:00Homeownership: This Time the Wall Street Journal Got it Wrong<div class="entry-content content"><img alt="smug" class="alignright size-full wp-image-29659" src="http://www.keepingcurrentmatters.com/wp-content/uploads/2014/05/smug.jpg" height="312" width="257" /><br /><br />&nbsp;<span style="color: #999999;"><i>Today's post is written by Steve Harney of Keeping Current Matters.</i></span><br /><br />I have been a subscriber to the <i>Wall Street Journal</i> (WSJ) for as long as I can remember. In my opinion, it is the single greatest source of financial information and insights available. I don’t always agree with their analysis but I always respect their position.<br /><br />However, in an article this past weekend, <a href="http://online.wsj.com/news/articles/SB10001424052702303948104579534230618539424?mod=WSJ_3Up_RealEstate&amp;mg=reno64-wsj" target="_blank" title="The New Math of Renting vs. Buying">The New Math of Renting vs. Buying</a>, they flat out got it wrong. Below are a few excerpts from the article and the reason why I believe the analysis to be incorrect.<br /><br /><h3><b>The Cost of Renting is Lower than the Cost of Owning</b></h3><h3><b>&nbsp;</b></h3>In the article, they discuss that homeownership is more expensive than renting in many large metropolitan areas.<br /><br /><i>"The monthly cost of renting was lower than buying in 20 large metropolitan areas at the end of last year, the most recent period for which data are available, according to figures provided exclusively to The Wall Street Journal by Deutsche Bank. That is up from 15 large metropolitan areas a year earlier.”</i><br /><br />The challenge is that more recent data from two very reliable sources has shown that not to be the case. Among the 35 largest metro areas <a href="http://zillow.mediaroom.com/index.php?s=159&amp;item=432" target="_blank" title="analyzed by Zillow">analyzed by Zillow</a> in the first quarter, <b><i>every metro</i></b> showed it would be cheaper to buy than rent if you plan to live in the home for at least 4.2 years.<br />&nbsp; <br /><br />According to <a href="http://trends.truliablog.com/category/rent-vs-buy-index/" target="_blank" title="a study by Trulia">a study by Trulia</a>:<br /><br /><i>“Homeownership remains cheaper than renting nationally and <b>in all of the 100 largest metro areas</b>. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally.” </i>(emphasis added)<br /><br /><h3><b>Renters Don’t Have All the Expenses of Homeowners</b></h3>The article goes on to explain that as a renter you have many less expenses than you would have as a homeowner:<br /><br /><i>"Renters, for example, don't pay property taxes, homeowner's insurance and, in most cases, maintenance costs. These expenses can cost homeowners about 3% of the price of their home annually, experts say.</i><br /><br /><i>While those costs can be folded into monthly rent, apartment renters often pay a smaller share as landlords spread the costs among many tenants, says Stijn Van Nieuwerburgh, director of the Center for Real Estate Finance Research at New York University. If a window breaks or the toilet plugs up, your landlord—not you—pays for the repairs."</i><br /><br />Don’t kid yourself – <b>the landlord does not pay the taxes nor pay for repairs</b>. The tenant does. It is incorporated in the rent. It is true, if it is an apartment building, that the property taxes are shared by all tenants. However, realize that the amount of property taxes for an apartment building with “many tenants” will be far greater than a single family residence.<br /><br />We think this situation is best explained by Eric Belsky, Managing Director of the <i>Joint Center of Housing Studies</i> at <i>Harvard University</i>, in his paper on homeownership - <a href="http://jchs.harvard.edu/sites/jchs.harvard.edu/files/w13-1_belsky_0.pdf" target="_blank" title="The Dream Lives On: the Future of Homeownership in America">The Dream Lives On: the Future of Homeownership in America</a>:<br /><br /><i>“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord <b>plus a rate of return</b>. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.” </i>(emphasis is mine)<br /><br /><h3><b>Investing the Difference in Payments Will Net a Renter More Money</b></h3><h3><b>&nbsp;</b></h3>The WSJ article claims that, if a renter invests the difference between their rent payment and a potential mortgage payment had they purchased, they would be better off financially in the long run.<br /><br /><i>"Renters don't end up with a valuable asset, as buyers do when they pay off a mortgage. But renters might be able to make more money by investing the monthly savings, as well as the cash they would otherwise use for a down payment, he says."</i><br /><br />They go on to explain their reasoning as follows:<br /><br /><i>"The value of the average single-family home increased by 3.6% a year in the three decades through 2013, compounded annually, according to mortgage giant Freddie Mac. By contrast, the compound annual return on the S&amp;P 500 over that period was 11.1%, according to Chicago-based investment-research firm Morningstar."</i><br /><br />As to the idea that the return on investment would be greater by investing in the stock market rather than purchase a home, I think the article in the WSJ forgot that housing is a leveraged investment. Belsky, in his paper, explains:<br /><br /><i>“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”&nbsp;</i><br /><br />That 3.6% average annual appreciation is really an 18% return on cash to a home buyer putting down 20%.<br /><br />They also assume the renter will save any difference in housing expense. However, that does not happen in reality. In their ongoing research for their paper, <b>Beer and Cookies Impact on Homeowners’ Wealth Accumulation</b>, Eli Beracha and Ken H. Johnson reveal that homeownership creates a ‘forced savings’ plan:<br /><br /><i>“It appears that homeownership creates extra wealth mainly through its ability to force owners to save rather than through property appreciation. Thus, homeownership appears to be a self-imposed savings plan, which through time leads to greater wealth accumulation as compared to comparable renters. In short, buying a home makes Americans save.”</i><br /><br />And Belsky from <i>Harvard</i> agrees:<br /><br /><i>“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”</i><br /><br />To further make this point, we can look at a <a href="http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf" target="_blank" title="study by the Federal Reserve">study by the Federal Reserve</a> which showed that the net worth of a homeowner ($174,500) is <b>30 times greater</b> than that of renter ($5,100).<br /><br /><h3><b>Bottom Line</b></h3>Looking at financial advantages of homeownership from every angle still reveals that it is a much better investment than renting.<br /><br />Source:&nbsp; http://www.simplifyingthemarket.com/en/2014/05/06/homeownership-this-time-the-wall-street-journal-got-it-wrong/?a=300707-b1182e40cfa0cba78377eee9df38896c</div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-49922119623518147712016-11-03T12:00:00.000-04:002016-11-04T19:15:57.969-04:00How Long Do Families Stay in a Home?<div class="entry-featured"><div class="entry-thumb"><img alt="How Long Do Families Stay in a Home? | MyKCM" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2016/11/01124804/20161102-Share-STM.jpg" height="410" width="750" /></div></div><div class="entry-content content"><br />The <i>National Association of Realtors (NAR)</i> keeps historic data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.<br /><br /><a class="cboxElement" href="http://s3.amazonaws.com/kcmmedia/2016/11/01124903/20161102-STM-ENG.jpg" rel="lightbox[40172]" target="_blank" title="How Long Do Families Stay in a Home? | MyKCM"><img alt="How Long Do Families Stay in a Home? | MyKCM" class="alignnone wp-image-40174" src="http://s3.amazonaws.com/kcmmedia/2016/11/01124903/20161102-STM-ENG.jpg" height="450" width="600" /></a><br /><h4><b>&nbsp;</b></h4><h4><b>Why the dramatic increase?</b></h4>The reasons for this change are plentiful. The top two reasons are:<br /><br /><ol></ol><ol><li>The fall in home prices during the housing crisis left many homeowners in a negative equity situation <i>(where their home was worth less than the mortgage on the property).&nbsp;</i></li><li>The uncertainty of the economy made some homeowners much more fiscally conservative about making a move.</li></ol><ol></ol>&nbsp;However, with home prices rising dramatically over the last several years, over 90% of homes with a mortgage are now in a positive equity situation with 70% of them having at least 20% equity.<br /><br />And, with the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.<br /><h4><b>What does this mean for housing?</b></h4>Many believe that a large portion of homeowners are not in a house that is best for their current family circumstances. They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple planning to start a family that currently lives in a one-bedroom condo.<br /><br />These homeowners are ready to make a move. Since the lack of housing inventory is a major challenge in the current housing market, this could be great news.<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2016/11/02/how-long-do-families-stay-in-a-home/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2016/11/02/how-long-do-families-stay-in-a-home/?a=300707-b1182e40cfa0cba78377eee9df38896c</a></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-5713172763739525972016-11-02T18:35:00.001-04:002016-11-02T18:35:29.937-04:00Thinking of Selling? New Construction Will Soon Be New Competition<div class="entry-featured"> <div class="entry-thumb"><img alt="A house frame on a white background. Very high resolution 3D ren" class="attachment-entry size-entry wp-post-image" height="315" src="http://s3.amazonaws.com/kcmmedia/2014/07/12094637/New-Construction.jpg" width="600" /></div></div><div class="entry-content content"> <br /><br />For the last several years, home sellers had to compete with huge inventories of distressed properties (foreclosures and short sales). The great news is that the supply of these properties is falling like a rock in the vast majority of housing markets. Many homeowners are now thinking of selling as the impact of this substantially discounted competition has disappeared.<br /><br />However, every seller of an existing residential property must realize that there is a new form of competition about to hit the market: newly constructed homes.<br /><br />As the economy improves, builders will again be bringing their housing developments to the market. <em>Trulia</em> recently reported that the purchaser, given a choice, actually prefers new construction. Here are two charts showing the results of the <em>Trulia</em> survey:<br /><br /><a class="cboxElement" href="http://www.keepingcurrentmatters.com/wp-content/uploads/2014/07/New-Construction-2.jpg" rel="lightbox[33433]" target="_blank" title="New Construction Trends | Keeping Current Matters"><img alt="New Construction Trends | Keeping Current Matters" class="alignnone wp-image-31150" height="216" src="http://www.keepingcurrentmatters.com/wp-content/uploads/2014/07/New-Construction-2.jpg" width="565" /></a><br /><h3><strong>&nbsp;</strong></h3><h3><strong>Bottom Line</strong></h3>If you are thinking of selling, perhaps you should do it now to avoid the additional competition that will come to the market later this year.<br /><br />Source: <a href="http://www.simplifyingthemarket.com/en/2014/07/08/thinking-of-selling-new-construction-will-soon-be-new-competition/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/07/08/thinking-of-selling-new-construction-will-soon-be-new-competition/?a=300707-b1182e40cfa0cba78377eee9df38896c </a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-12861440660864949352016-11-01T18:15:00.001-04:002016-11-01T18:15:14.015-04:001st Time Buyers Finally Crashing the Real Estate Party<div class="entry-featured"> <div class="entry-thumb"><img alt="1st Time Buyers Finally Crashing the Real Estate Party | Simplifying The Market" class="attachment-entry size-entry wp-post-image" height="410" src="http://s3.amazonaws.com/kcmmedia/2015/07/11095305/Cannonball-1.jpg" width="750" /></div></div><div class="entry-content content"> <br />There has been much conversation regarding the lack of first time home buyers in today’s real estate market. However, three recent reports seem to suggest that they are now entering the market in increasing numbers.<br /><span id="more-33684"></span><br />The most recent <a href="http://www.realtor.org/news-releases/2015/06/existing-home-sales-bounce-back-strongly-in-may-as-first-time-buyers-return" target="_blank" title="Existing Home Sales Report">Existing Home Sales Report</a> from the <em>National Association of Realtors</em> (NAR) reported that:<br /><br /><blockquote><em>“The percent share of first-time buyers rose to 32 percent in May, up from 30 percent in April and matching the highest share since September 2012. A year ago, first-time buyers represented 27 percent of all buyers.”</em></blockquote><br />And, in a recent <em>Washington Post</em> <a href="http://www.washingtonpost.com/realestate/first-time-buyers-grab-a-bigger-share-of-the-real-estate-market/2015/06/23/eaa20778-1907-11e5-ab92-c75ae6ab94b5_story.html?postshare=4391435154112727" target="_blank" title="article">article</a>, Ken Harney revealed that:<br /><br /><blockquote><em>“According to a June 19 Campbell/Inside Mortgage Finance tracking survey, which polls 2,000 real estate agents nationwide, first-time buyers accounted for nearly 39 percent of home purchases in May; that’s the highest level since August 2010.” </em></blockquote><br />Also, according to <em>American Enterprise Institute's International Center on Housing Risk’s</em> May <a href="http://www.housingrisk.org/first-time-buyer-mortgage-share-and-mortgage-risk-indexes-for-april-2015/#more-1737" target="_blank" title="First-Time Buyer Mortgage Risk Index">First-Time Buyer Mortgage Risk Index</a> (FBMRI), the share of first-time buyers stood at an estimated 52.2 percent.<br /><br />Lawrence Yun, the Chief Economist at NAR explained:<br /><br /><blockquote><em>"The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs."</em></blockquote><br /><h3><strong>Bottom Line</strong></h3>It seems that the number of first time buyers is increasing for the first time in a long time. This further lends credence to the fact that the residential housing market is back.<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2015/07/08/1st-time-buyers-finally-crashing-the-real-estate-party/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2015/07/08/1st-time-buyers-finally-crashing-the-real-estate-party/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-25235428460971691622016-10-31T20:48:00.001-04:002016-10-31T20:48:30.926-04:00What If I Wait Until Next Year to Buy?<div class="entry-featured"> <div class="entry-thumb"><img alt="What If I Wait Until Next Year to Buy? | Simplifying The Market" class="attachment-entry size-entry wp-post-image" height="410" src="http://s3.amazonaws.com/kcmmedia/2015/07/11095307/Cost-Of-Waiting-1.jpg" width="750" /></div></div><div class="entry-content content"> <br />First-time homebuyers are flocking to the housing market in greater numbers than any time in the last few years. Renters who are ready and willing to buy are now realizing that they are also able to as well. Many first-time buyers are Millennials (born between 1981 – 1997).<br /><br />If you are one of the many in this generation who sees your friends and family diving head first into the real estate market, and wonder if now is the time for you to do the same, keep reading!<br /><br /><span id="more-33691"></span><br />The <em>Cost of Waiting to Buy</em> is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.<br /><br />Let’s look at an example of what the experts are predicting for the upcoming year, and what that really would mean for you. Let’s say you’re 30 and your dream house costs $250,000 today. Right now mortgage interest rates are at or about 4%.<br /><br /><h3><strong>Your monthly mortgage payment (principal &amp; interest only) would be $1,193.54.</strong></h3>But you’re busy, you like your apartment, and moving is such a hassle. You decide to wait until next year to buy. CoreLogic <a href="http://www.corelogic.com/about-us/researchtrends/home-price-index-report.aspx#.VaAI78ZViko" target="_blank" title="predicts">predicts</a> that home prices will appreciate by 5.1% in the next 12 months; this means that same house you loved now costs, $262,750.<br /><br />Freddie Mac <a href="http://www.freddiemac.com/finance/pdf/june_2015_public_outlook.pdf" target="_blank" title="predicts">predicts</a> that over this same period of time, interest rates will be a full point higher at 5.0%. Your new payment per month is now <strong>$1,410.50</strong>.<br /><br /><h3><strong>The difference in payment is $216.96 PER MONTH!</strong></h3>That’s basically like taking $8 and tossing it out the window EVERY DAY!<br />Or you could look at it this way:<br /><br /><ul><li>That’s your morning coffee everyday on the way to work (average $2) with $10 left for lunch!</li><li>There goes Friday Sushi Night! ($50 x 4)</li><li>Stressed Out? How about a few deep tissue massages with tip!</li><li>Need a new car? You could get a brand new car for $217 a month.</li></ul>&nbsp;Let’s look at that number annually! Over the course of your new mortgage at 5.0%, your annual additional cost would be $2,603.52!<br /><br />Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining. We could come up with 100’s of ways to spend $2,603, and we’re sure you could too!<br /><br />Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent <strong>an additional $78,105.60</strong>, all because when you were 30 you thought moving in 2015 was such a hassle or loved your apartment too much to leave yet.<br /><br />Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready. But if they showed you that you could save $78,000 you’d at least listen to what they had to say.<br /><br />They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2015/07/14/what-if-i-wait-until-next-year-to-buy/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2015/07/14/what-if-i-wait-until-next-year-to-buy/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-76027684447510594262016-10-28T21:41:00.001-04:002016-10-28T21:41:43.870-04:00Don’t Underestimate the Importance of Using an Agent When Selling Your Home<div class="entry-featured"> <div class="entry-thumb"><img alt="Don’t Underestimate the Importance of Using an Agent When Selling Your Home | MyKCM" class="attachment-entry size-entry wp-post-image" height="410" src="http://s3.amazonaws.com/kcmmedia/2016/09/08165620/20160919-Share-STM.jpg" width="750" /></div></div><div class="entry-content content"> <br />When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold.<br /><br />In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. For the past three years, 92% of all buyers have used the internet in their home search according to the&nbsp;<em>National Association of Realtors’</em>&nbsp;most recent&nbsp;<a href="http://www.realtor.org/reports/highlights-from-the-2015-profile-of-home-buyers-and-sellers" target="_blank" title="Profile of Home Buyers &amp;amp; Sellers"><em>Profile of Home Buyers &amp; Sellers</em></a><em>.</em><br /><br />However, the report also revealed that <strong>95% percent of buyers that used the internet when searching for a home purchased their home through either a real estate agent/broker or from a builder or builder’s agent.</strong> Only 2% purchased their home directly from a seller whom the buyer didn’t know.<br /><br />Buyers search for a home online, but then depend on an agent to find the actual home they will buy (53%), to negotiate the terms of the sale &amp; price (48%), or to help understand the process (60%).<br /><br />The plethora of information now available has resulted in an increase in the percentage of buyers that reach out to real estate professionals to&nbsp;<em>“connect the dots.”</em> This is obvious, as the percentage of overall buyers who used an agent to buy their home has steadily increased from 69% in 2001.<br /><br /><h3><strong>Bottom Line</strong></h3>If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2016/09/19/dont-underestimate-the-importance-of-using-an-agent-when-selling-your-home/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2016/09/19/dont-underestimate-the-importance-of-using-an-agent-when-selling-your-home/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-31948251676347853652016-10-26T19:46:00.000-04:002016-10-26T19:46:47.433-04:005 Demands to Make on Your Listing Agent<div class="entry-featured"><div class="entry-thumb"><img alt="different real estate" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2015/01/11163517/5-Demands.jpg" height="315" width="600" /></div></div><div class="entry-content content">Are you thinking of selling your house? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.<br /><br />You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.<br /><br />Here are the top 5 demands to make of your Real Estate Agent when selling your house:<br /><br /><h4><b>1. Tell the truth about the price</b></h4>Too many agents just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.<br /><br />The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. Surveys show that there was a challenge with the appraisal on almost 20% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.<br /><br /><h4><b>2. Understand the timetable with which your family is dealing</b></h4>You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.<br />This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. Your agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work.<b>&nbsp;</b><br /><br /><h4><b>3. Remove as many of the challenges as possible</b></h4>It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.<br /><br /><i>Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them and their family (commission, length, etc.), don’t expect them to turn into a super hero when they are negotiating for you and your family with the buyer.</i><br /><br /><h4><b>4. Help with the relocation</b></h4>If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.<br /><br /><h4><b>5. Get the house SOLD!</b></h4>There is a reason you are putting yourself and your family through the process of moving.<br /><br />You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.<br /><br /><h4><b>Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED A GREAT AGENT!</b></h4>&nbsp;Source: <a href="http://www.simplifyingthemarket.com/en/2015/01/13/5-demands-to-make-on-your-listing-agent/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2015/01/13/5-demands-to-make-on-your-listing-agent/?a=300707-b1182e40cfa0cba78377eee9df38896c</a></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-54988500210031817292016-10-24T20:31:00.000-04:002016-10-24T20:32:50.942-04:004 Reasons to Buy Before Winter<div class="entry-featured"><div class="entry-thumb"><img alt="Couple-by-the-Fire" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2014/11/12103304/Couple-by-the-Fire.jpg" height="315" width="600" /></div></div><div class="entry-content content"><br />It's that time of year, the seasons are changing and with them bring thoughts of the upcoming holidays, family get togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don't have to look much farther to find four great reasons to consider buying a home now, instead of waiting.<br /><br /><h4><b>1. Prices Will Continue to Rise</b></h4>The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next five years to be between <b>11.2%</b> (most pessimistic) and <b>27.8%</b> (most optimistic).<br /><br />The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.<br /><br /><h4><b>2. Mortgage Interest Rates Are Projected to Increase</b></h4>Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of next year.<br /><br />An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.<b>&nbsp;</b><br /><br /><h4><b>3. Either Way You are Paying a Mortgage</b></h4>As a recent paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”<br /><br /><h4><b>4. It’s Time to Move On with Your Life</b></h4>The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.<br /><br /><h3><b>Bottom Line</b></h3>If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2014/11/10/4-reasons-to-buy-before-winter-2/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/11/10/4-reasons-to-buy-before-winter-2/?a=300707-b1182e40cfa0cba78377eee9df38896c</a></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-79338574894066502762016-10-21T19:51:00.000-04:002016-10-21T19:51:08.759-04:00Starting to Look for a Home? Know What You WANT vs. What You NEED<div class="entry-featured"> <div class="entry-thumb"><img alt="Starting to Look for a Home? Know What You WANT vs. What You NEED | MyKCM" class="attachment-entry size-entry wp-post-image" height="410" src="http://s3.amazonaws.com/kcmmedia/2016/10/14160840/20161019-Share-STM.jpg" width="750" /></div></div><div class="entry-content content"> <br />In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.<br /><br />If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or <em>Pinterest,</em> and start looking at the countless homes listed for sale with rose-colored glasses.<br /><br />Do you really need that farmhouse sink in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave of your dreams be a future renovation project instead of a make or break now? <br /><br />The first step in your home buying process should be to get <a href="http://www.mykcm.com/2016/09/13/why-getting-pre-approved-should-be-your-first-step/" target="_blank" title="pre-approved for your mortgage">pre-approved for your mortgage</a>. This allows you to know your budget before you fall in love with a home that is way outside of it.<br /><br />The next step is to list all the features of a home that you would like, and to qualify them as follows:<br /><br /><ul><li><strong>‘Must Haves’</strong> – if this property does not have these items, then it shouldn’t even be considered. <em>(ex: distance from work or family, number of bedrooms/bathrooms)</em></li></ul><ul><li><strong>‘Should Haves’</strong> – if the property hits all of the must haves and some of the should haves, it stays in contention, but does not <em>need</em> to have all of these features.</li></ul><ul><li><strong>‘Absolute Wish List’</strong> – if we find a property in our budget that has all of the ‘must haves,’ most of the ‘should haves,’ and ANY of these, it’s the winner!</li></ul>&nbsp;<h3><strong>Bottom Line</strong></h3>Having this list flushed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before starting to show you houses in your desired area.<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2016/10/19/starting-to-look-for-a-home-know-what-you-want-vs-what-you-need/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2016/10/19/starting-to-look-for-a-home-know-what-you-want-vs-what-you-need/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-25303507550704667262016-10-20T19:49:00.000-04:002016-10-20T19:52:48.383-04:00Debunking Some Myths about Mortgage Availability<div class="entry-featured"><div class="entry-thumb"><img alt="Debunking Some Myths about Mortgage Availability | Simplifying The Market" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2015/07/11095306/Myths-1.jpg" height="410" width="750" /></div></div><br />There seems to be a growing chasm between what the public believes to be needed and what is actually needed to qualify for a residential home loan.<br /><br />A recent <a href="http://www.businesswire.com/news/home/20150616005142/en/Consumers%E2%80%99-Misconceptions-Temper-Desire-Homeownership#.VYGryWfbKcw" target="_blank" title="survey">survey</a> by Ipsos reported that:<br /><ul></ul><ul><li>Two-thirds of those surveyed believe they need a very good credit score to buy a home, with 45 percent thinking a <i>“good credit score”</i> is over 780.</li></ul><ul></ul><ul></ul><ul><li>Consumers overestimate the down payment funds needed to qualify for a home loan, with 36 percent thinking a 20 percent down payment is always required.</li></ul><ul></ul>However, according to <i>American Enterprise Institute's International Center on Housing Risk’s</i> May <a href="http://www.housingrisk.org/first-time-buyer-mortgage-share-and-mortgage-risk-indexes-for-april-2015/#more-1737" target="_blank" title="First-Time Buyer Mortgage Risk Index">First-Time Buyer Mortgage Risk Index</a> (FBMRI), reality is far from perception. The report reveals:<br /><br /><ul></ul><ul><li>70% of first-time buyer mortgages had a combined loan-to-value ratio of 95% or higher</li></ul><ul></ul><ul><li>About 20% of first-time buyers taking out mortgages had a FICO score below 660</li></ul><ul></ul><ul><li>25% had total debt-to-income ratios above 43 percent</li></ul><ul></ul><ul><li>The median first-time buyer with an agency mortgage made a down payment of only 3 percent, or $7200 in dollar terms.</li></ul><ul></ul><ul><li>The median FICO score for first-time buyers with agency mortgages was 705</li></ul><ul></ul><ul><li>For first-time buyers with FHA-insured loans, the median FICO score was only 672</li></ul><ul></ul>These numbers contradict the frequent claims that first-time buyers face difficulties in obtaining mortgages.<br /><br /><h3><b>Bottom Line</b></h3>Stephen Oliner, co-director of <i>AEI’s International Center on Housing Risk</i> explained the reality of the situation.<br /><br /><i>“One hears all the time that first-time buyers have limited access to mortgage debt.&nbsp; But this isn’t true. Many first-time buyers with low FICO scores and little money down are buying homes every month.”&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i><br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2015/07/09/debunking-some-myths-about-mortgage-availability/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2015/07/09/debunking-some-myths-about-mortgage-availability/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><i><br /></i>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-19458073020670885762016-10-12T20:07:00.001-04:002016-10-12T20:07:34.342-04:00Buying a Home? Don't Let Fear Get in Your Way<div class="entry-featured"> <div class="entry-thumb"><img alt="Dont-Let-Fear-Get-In-The-Way" class="attachment-entry size-entry wp-post-image" height="338" src="http://s3.amazonaws.com/kcmmedia/2014/10/12102851/Dont-Let-Fear-Get-In-The-Way.jpg" width="600" /></div></div><div class="entry-content content"> <div class="p1"><br /></div><div class="p1"><em><span style="color: #999999;">Today we are excited to have Steve Harney, the Founder &amp; Chief Content Creator for Keeping Current Matters as our guest blogger. &nbsp;Steve has over 30 years experience in real estate and is a trusted &amp; sought after speaker. Enjoy!</span></em></div><div class="p1"><br /></div>Last week, I was talking to a young couple I know that was about to close on their first home. They were riding the wild rollercoaster of current mortgage rate swings and were not happy about the mortgage process overall. Yet, when the conversation shifted to finally living in a home that they own, their disposition changed dramatically.<br /><br />A smile came across their faces as they talked about decorating their son’s bedroom and how much he will enjoy the backyard. They talked about inviting friends over for dinner and their family over for the holidays. The more they talked, the more excited they became.<br /><br />I asked them if many of their friends were also buying. I was shocked to find out that they weren’t. Why not? Their friends believed that homeownership was financially unobtainable right now. Many wanted to own but didn’t think they could afford the monthly mortgage payment. They decided to rent instead.<br /><br />I said that, with interest rates and prices where they are today, owning a home might not be any more expensive than renting one. The couple agreed but said their friends were afraid; afraid they might not qualify for a loan, afraid to handle negotiations with a seller, afraid of the home buying process itself.<br />Wow!<br /><br /><h3>People should not make decisions out of fear!</h3>I’m not saying that every young person should own a home. I am saying that anyone that is qualified and wants to buy should not be afraid of the process. I realize the process may seem daunting but realize over 10,000 homes sell every day in this country. Sit down and discuss your goals with professionals from both the real estate and mortgage industries. Get the facts. Make an informed decision. Don’t let the fear of the unknown prevent you from living the life of your dreams.<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2014/10/08/buying-a-home-dont-let-fear-get-in-your-way-3/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/10/08/buying-a-home-dont-let-fear-get-in-your-way-3/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-11862389301414611422016-10-11T21:02:00.001-04:002016-10-11T21:02:37.291-04:00A Homeowner’s Net Worth is 36x Greater Than A Renter!<div class="entry-featured"> <div class="entry-thumb"><img alt="Great Dane HARLEQUIN and a chihuahua" class="attachment-entry size-entry wp-post-image" height="315" src="http://s3.amazonaws.com/kcmmedia/2014/09/12102538/36x-2.jpg" width="600" /></div></div><div class="entry-content content"> <br />Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.<br /><br />The Federal Reserve conducts a <a href="http://www.federalreserve.gov/pubs/bulletin/2014/pdf/scf14.pdf" target="_blank" title="Survey of Consumer Finances"><em>Survey of Consumer Finances</em></a><em>, </em>every three years, and just released their latest edition this past week.<br /><br /><strong>Some of the findings revealed in their report:</strong><br /><ul><li>The average American family has a net worth of $81,200</li><li>Of that net worth, 61.4% ($49,856) of it is in home equity</li><li><strong>A homeowner’s net worth is over <em>36 times greater</em> than that of a renter</strong></li><li>The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400 </li></ul><h3><strong>Bottom Line</strong></h3>The Fed study found that homeownership is still a great way for a family to build wealth in America.<br /><br /><br />Source: <a href="http://www.simplifyingthemarket.com/en/2014/09/22/a-homeowners-net-worth-is-36x-greater-than-a-renter/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/09/22/a-homeowners-net-worth-is-36x-greater-than-a-renter/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-83023775451284950832016-10-10T18:41:00.000-04:002016-10-10T18:42:32.994-04:005 Reasons to Hire a Real Estate Professional<div class="entry-featured"><div class="entry-thumb"><img alt="8.14-Blog-Visual" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2014/08/12095854/8.14-Blog-Visual.jpg" height="400" width="600" /></div></div><div class="entry-content content"><br />Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can <i>For Sale by Owner</i> or FSBO. The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened in recent months due to the projections of <a href="http://mykcm.com/2014/07/28/buying-a-house-4-reasons-to-do-it-now/" title="higher mortgage interest rates &amp;amp; home prices">higher mortgage interest rates &amp; home prices</a> as the market continues to recover.<br /><br /><h4><b>1. What do you do with all this paperwork?</b></h4>Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.<br /><br /><h4><b>2. Ok, so you found your dream house, now what?</b></h4>According to the <i>Orlando Regional REALTOR Association</i>, there are over <a href="http://www.orlandorealtors.org/?page=realtordoesforyou" target="_blank" title="230 possible actions">230 possible actions</a> that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?<br /><br /><h4><b>3. Are you a good negotiator?</b></h4>So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least <a href="http://mykcm.com/2014/06/19/fsbos-must-be-ready-to-negotiate-2/" title="11 different people">11 different people</a> that you will have to be knowledgeable with and answer to, during the process.<br /><br /><h4><b>4. What is the home you’re buying/selling really worth?</b></h4>It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the <a href="http://economistsoutlook.blogs.realtor.org/2013/12/04/2013hbs-twitter-chat-recap/" target="_blank" title="National Association of REALTORS"><i>National Association of REALTORS</i></a>, <i>“the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”</i> Get the most out of your transaction by hiring a professional.<br /><br /><h4><b>5. Do you know what’s really going on in the market?</b></h4>There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?<br />Dave Ramsey, the financial guru advises:<br /><blockquote><i>“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”</i></blockquote>Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.<br /><br /><h3><b>Bottom Line:</b></h3>You wouldn’t hike up Mt. Everest without a Sherpa, or replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2014/08/14/5-reasons-to-hire-a-real-estate-professional-2/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/08/14/5-reasons-to-hire-a-real-estate-professional-2/?a=300707-b1182e40cfa0cba78377eee9df38896c</a></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-45092058765639871712016-10-07T19:10:00.000-04:002016-10-07T19:11:42.363-04:00Still a Great Time to Buy a Home…but HURRY!!<div class="entry-featured"><div class="entry-thumb"><img alt="8.20-Blog-Visual" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2014/08/12095854/8.20-Blog-Visual.jpg" height="315" width="600" /></div></div><div class="entry-content content"><br />Kevin Kelly, Chairman of the <i>National Association of Home Builders</i> (NAHB), recently explained that:<br /><blockquote><i>“With interest rates near historically low levels and strengthening job growth, now continues to be a great opportunity to buy a home.” </i></blockquote>We couldn’t agree more. However, one&nbsp;must realize that, with prices and interest rates both projected to increase, waiting could be costly.<br /><br />There are two organizations that look at the affordability of purchasing and actually measure it over time. The <i>National Association of Home Builders </i>has their <a href="http://www.nahb.org/reference_list.aspx?sectionID=135" target="_blank" title="Housing Opportunity Index">Housing Opportunity Index</a> (HOI) and the <i>National Association of Realtors’ </i>has the <a href="http://www.realtor.org/topics/housing-affordability-index" target="_blank" title="Housing Affordability Index">Housing Affordability Index</a><i>.&nbsp;</i><br /><br />Both indexes are reporting the same thing. The cost of buying a home is beginning to increase leading the affordability indexes to dip.<br /><br /><h4><b>Both indexes say we passed the bottom of the housing market </b></h4>According to NAHB’s HOI housing affordability dipped slightly in the second quarter of 2014. <i>NAHB</i>’s Chief Economist David Crowe explains:<br /><br /><blockquote><i>“The second quarter HOI reflects the slow but steady march toward the historic levels of price appreciation and interest rates that result in affordability levels we experienced before the mid-2000s boom.”</i></blockquote>According to NAR in a recent <a href="http://economistsoutlook.blogs.realtor.org/2014/08/15/the-latest-housing-affordability-index/#sf4183262" target="_blank" title="Economists’ Outlook post">Economists’ Outlook post</a>, home affordability is down from both one month ago and one year ago in all regions.<br /><br />Michael Hyman, Research Assistant at NAR said:<br /><blockquote><i>“At the national level, housing affordability is down for the month of June due to higher prices and qualifying income levels despite the lowest mortgage rates of the year.”</i></blockquote>In a <a href="http://blogs.wsj.com/economics/2014/08/16/number-of-the-week-housing-affordability-hits-six-year-low/" target="_blank" title="recent article">recent article</a>, the <i>Wall Street Journal</i> also revealed that the cost of home ownership is higher than any time in over five years:<br /><br /><blockquote><i>“Housing affordability hit its lowest level in nearly six years in June as home prices continued to climb."</i></blockquote><br /><h3><b>Bottom Line</b></h3>If you were waiting for the bottom of the market, you missed it. Yet, with prices below values of seven years ago in most parts of the country and interest rates near historic lows, it is still a great time to buy a home…<i>but hurry</i>!<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2014/08/20/still-a-great-time-to-buy-a-homebut-hurry/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/08/20/still-a-great-time-to-buy-a-homebut-hurry/?a=300707-b1182e40cfa0cba78377eee9df38896c</a></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-33487124061820546202016-10-05T18:38:00.001-04:002016-10-06T14:20:25.732-04:00A Great Reason to Sell Now<div class="entry-featured"><div class="entry-thumb"><img alt="5.8-Blog" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2014/05/12155156/5.8-Blog.jpg" /></div></div><div class="entry-content content"><br /><br />The price of any item (including residential real estate) is determined by ‘supply and demand’. If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.<br /><br />According to the <i>National Association of Realtors</i> (NAR), the supply of homes for sale is still <a href="http://www.realtor.org/news-releases/2014/04/existing-home-sales-remain-soft-in-march" target="_blank" title="below the normal 6 month level">below the normal 6 month level</a> of inventory. That means less competition.<br /><br />However, a <a href="http://mykcm.com/2014/02/12/a-flood-of-listings-coming-to-the-market/" title="recent study">recent study</a> revealed that 71% of current homeowners are considering selling their home this year. Putting your home on the market now instead of waiting for this increased competition to come to the market might make a lot of sense.<br /><br />Buyers currently in the market are motivated purchasers. They want to buy now. With limited inventory available in most markets, a seller will be in a great position to negotiate their best possible price.<br /><br />Resource:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2014/05/08/a-great-reason-to-sell-now/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/05/08/a-great-reason-to-sell-now/?a=300707-b1182e40cfa0cba78377eee9df38896c</a></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-81086936988801424432016-10-05T18:38:00.000-04:002016-10-05T18:40:25.305-04:00Getting A Mortgage: Why So Much Paperwork?<div class="entry-featured"><div class="entry-thumb"><div class="entry-featured"><div class="entry-thumb"><img alt="Woman-overwhelmed-by-pile-of-files" class="attachment-entry size-entry wp-post-image" src="http://s3.amazonaws.com/kcmmedia/2014/09/12102615/Woman-overwhelmed-by-pile-of-files.jpg" height="315" width="600" /></div></div><div class="entry-content content"><br />We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know <i>everything</i> <i>about us</i> and requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.<br /><br />There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.<br /><br />The government has set new guidelines that now demand that the bank prove <i>beyond any doubt</i> that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again</div><div class="entry-content content"><br />The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.</div><div class="entry-content content"><br />However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably below 5%.<br /><br />The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of &lt;5%, they would probably bend over backwards to make the process much easier.<br /><br /><h3>Bottom Line</h3>Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates<br />.</div></div></div>Source: <a href="http://www.simplifyingthemarket.com/en/2014/09/11/getting-a-mortgage-why-so-much-paperwork-2/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/09/11/getting-a-mortgage-why-so-much-paperwork-2/?a=300707-b1182e40cfa0cba78377eee9df38896c</a>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-61330492564535150362016-10-04T20:57:00.001-04:002016-10-04T20:57:57.097-04:00Moving Up? Do it Now!<div class="entry-content content"> <img alt="Moving Up? Do It Now | Realhomesatlanta" class="alignnone size-full wp-image-30087" height="315" src="http://www.keepingcurrentmatters.com/wp-content/uploads/2014/05/urgency.jpg" title="" width="600" /><br /><br />A recent <a href="http://www.keepingcurrentmatters.com/2014/02/12/a-flood-of-listings-coming-to-the-market/" target="_blank" title="study">study</a> revealed that the number of existing home owners planning to buy a home this year is about to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.<br /><br />There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.<br /><br />Assume they had a home worth $300,000 and were looking at a home for $450,000 (putting 10% down they would get a mortgage of $405,000). By waiting, their house appreciated by approximately 10% over the last year (based on the <strong>Case Shiller Pricing Index</strong>). Their home could now sell for $330,000. That would mean an additional $30,000 in equity assuming they didn’t incur any expenses in selling the home.<br /><br />But, the $450,000 home would now be worth $495,000. Adding the original 10% down payment ($45,000) to the additional equity ($30,000), they would now have a $75,000 down payment. That would still need a mortgage of $425,000.<br /><br />Here is a table showing what additional monthly cost would be incurred by waiting:<br /><br /><a class="cboxElement" href="http://www.keepingcurrentmatters.com/wp-content/uploads/2014/05/Cost-of-Waiting-Visual-Members.jpg" rel="lightbox[33377]" target="_blank" title="Cost of Waiting Visual Members"><img alt="Cost of Waiting Visual Members" class="aligncenter wp-image-30091" height="230" src="http://www.keepingcurrentmatters.com/wp-content/uploads/2014/05/Cost-of-Waiting-Visual-Members.jpg" width="550" /></a><br /><br />According to the <strong>Home Price Expectation Survey</strong>, home prices are projected to appreciate by approximately 6% over the next eighteen months. Interest rates are also expected to rise by as much as another full percentage point in that same time period according to <em>FreddieMac</em>. If your family plans to move-up to a nicer or bigger home, it may make sense to move now rather than later.<br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2014/05/27/moving-up-do-it-now/?a=300707-b1182e40cfa0cba78377eee9df38896c">http://www.simplifyingthemarket.com/en/2014/05/27/moving-up-do-it-now/?a=300707-b1182e40cfa0cba78377eee9df38896c</a><br /> </div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-61275484014516623392016-10-03T20:40:00.003-04:002016-10-03T20:43:07.716-04:005 Reasons to Hire a Real Estate Professional<div class="entry-featured"><div class="entry-thumb"></div></div><div class="entry-content content"><img alt="5 Gold" class="alignright size-full wp-image-29937" src="http://www.keepingcurrentmatters.com/wp-content/uploads/2014/05/5-Gold.jpg" /><br />Whether you are buying or selling a home, you need an experienced Real Estate Professional to lead you toward your ultimate goal. In this world of instant gratification and Internet searches, many sellers think that they can For Sale by Owner or FSBO.<br /><br />The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but rather have been strengthened in recent months due to <a href="http://mykcm.com/2014/04/22/with-rates-prices-on-the-rise-do-you-know-the-true-cost-of-waiting/" title="rising interest rates &amp;amp;&amp;nbsp;home prices">rising interest rates &amp;&nbsp;home prices</a> as the market recovers.<br /><br /><h4><b>1. What do you do with all this paperwork?</b></h4>Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.<br /><br /><h4><b>2. Ok, so you found your dream house, now what?</b></h4>According to the <a href="http://www.orlandorealtors.org/?page=realtordoesforyou" target="_blank" title="Orlando Regional REALTOR Association">Orlando Regional REALTOR Association</a>, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?<br /><br /><h4><b>3. Are you a good negotiator?</b></h4>So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, <a href="http://mykcm.com/2013/11/05/fsbos-must-be-ready-to-negotiate/" title="there are at least 11 different people">there are at least 11 different people</a> that you will have to be knowledgeable with and answer to, during the process.<br /><br /><h4><b>4. What is the home you’re buying/selling really worth?</b></h4>Not only is it important for your home to be priced correctly from the start, to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.<br /><br />According to the <a href="http://economistsoutlook.blogs.realtor.org/2013/12/04/2013hbs-twitter-chat-recap/#more-14199" target="_blank" title="National Association of REALTORS">National Association of REALTORS</a>, <i>“the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”</i><br />Get the most out of your transaction by hiring a professional.<br /><h4><b>5. Do you know what’s really going on in the market?</b></h4>There is so much information out there on the news and the Internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?<br /><br /><i>“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” – Dave Ramsey</i><br /><br />Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.<br /><br /><h4><b>Bottom Line:</b></h4>You wouldn’t hike up Kilimanjaro without a Sherpa, or replace the engine in your car without a trusted mechanic, why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?<br /><br /><br />Source:&nbsp; <a href="http://www.simplifyingthemarket.com/en/2014/05/14/5-reasons-to-hire-a-real-estate-professional-3/">http://www.simplifyingthemarket.com/en/2014/05/14/5-reasons-to-hire-a-real-estate-professional-3/</a></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0tag:blogger.com,1999:blog-6695958143561161434.post-59939232058258652862016-09-30T16:10:00.000-04:002016-09-30T17:16:02.802-04:00Either Way, You’re Still Paying a Mortgage<div class="entry-thumb"><div class="entry-content content"><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-_Qavr9lYP1g/V-7VDVjZcPI/AAAAAAAAAjk/aVgvxhCyq7URejLFPbzRcnX1padfFG_RACLcB/s1600/wealthy-house.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="640" src="https://1.bp.blogspot.com/-_Qavr9lYP1g/V-7VDVjZcPI/AAAAAAAAAjk/aVgvxhCyq7URejLFPbzRcnX1padfFG_RACLcB/s640/wealthy-house.jpg" width="418" /></a></div><br />There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with our parents rent free, you are paying a mortgage - <i>either your mortgage or your landlord’s</i>.<br /><br />As a <a href="http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/w13-1_belsky_0.pdf" target="_blank" title="recent paper">recent paper</a> from the <i>Joint Center for Housing Studies at Harvard Univ</i>ersity explains:<br /><br /><i>“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”</i><br /><br />Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.<br /><br />Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since prices and interest rates are still at bargain prices.</div></div>Junior Cetoutehttp://www.blogger.com/profile/13753159939194610468noreply@blogger.com0